Work

Rethinking Auditor Independence: Evidence from High-Corruption Environments

Year: 2026

Type: article

Abstract: Objectives: This study re-examines the concept of auditor independence in high-corruption environments, arguing that independence is not merely a professional attribute, but an outcome constrained by multilevel institutional, organizational, and individual pressures.Methodology: The study identifies the determinants of auditor behaviour through a survey analysed using exploratory factor analysis (EFA).Finding: We identify eleven interrelated factors shaping auditor behaviour, which cluster into three dimensions: (1) Capability and Stance, (2) Alignment and Resourcing, and (3) Protection and Pressure. The findings suggest that auditors operate not as fully independent monitors but as constrained agents embedded within corruption-prone systems, where institutional pressures, organizational incentives, and personal risks jointly shape audit outcomes.Conclusion: This study shifts the conceptualization of auditor independence from an assumed professional condition to a context-dependent outcome. By integrating agency, fraud-triangle, and institutional perspectives, we show that the audit expectation gap reflects structural constraints rather than mere misunderstanding of auditor roles.

Source: MIX JURNAL ILMIAH MANAJEMEN

DOI: 10.22441/jurnal_mix.2026.v16i1.025

Authors: Bambang Setiono, Seng Hansen

Institutions: Universitas Agung Podomoro, President University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: gold

Estimated APC paid: $134